What to say to debt collectors on the phone

There
are many rights provided by the federal government regarding your
debts and credit history. Many states provide additional rights
also.

The Fair Debt Collection Practices Act specifics how collection
agencies behave toward debtors. The FDCP Act applies not just for
collection agencies, but to debt collectors as well.

The law specifies that debt collectors may not contact you at
unusual or inconvenient times; which means before 8 a.m. and after 9
p.m. or at work if you are not permitted to accept such calls there.

Collection agents may not call you repeatedly or call you without
identifying themselves. They may not call you collect or make you
responsible for any costs of the phone call. They are not permitted
to identify themselves as law enforcement or as attorneys. They
cannot harass, oppress, or abuse you. They may not use or threaten
to use violence or harm toward you or anyone else and they may not
threaten to damage anyone's reputation. They cannot threaten to
garnish your wages or sue you unless they actually intend to do so.
They cannot threaten you with arrest or jail. If you have an
attorney, they must speak with your attorney and not to you directly
unless you give permission.

Obscene language is not permitted. Your name may not be published on
a deadbeat listing. If you're contacted by a debt collector, you can
tell him or her not to phone you again. Debt collectors are required
to comply with this request and can only communicate with you by
mail regarding the status of the delinquent account, such as when it
is being sent to a lawyer for a lawsuit.

It's important get the debt collector's name, the name of the
agency, business address, and phone number whenever you speak to a
debt collector. Carefully document all contact, including dates,
times, and the subject of the conversations. Contact your state
attorney general if you believe you are being treated in a manner
that violates the law or if you’re no contact request for is being
ignored. State your complaint in a letter to the collection agency.
Make sure you keep a copy of the letter and send the complaint
letter with a signature necessary for delivery.

It is illegal for collectors to lie about the amount you owe and
they cannot threaten to take action against you that they do not
intend to take. No outrageous or unfair attempts to collect the
money are permitted by the law. This can include adding interest
costs or fees which are not part of the original debt. The collector
cannot ask for a postdated check by threatening you with criminal
action, or accepting a check that is more than five days postdated
unless they notify you three to ten days before cashing it. They may
not deposit a postdated check before the date
on it.

If you tell a collection agency not to contact you again, it must
comply, unless it is giving you notice of plans to sue or to stop
collection attempts.

Anytime you are sent correspondence from a debt collector, it should
not resemble court papers or correspondence from a government
agency. It may not seem like it is from an attorney. The envelope
containing the correspondence must be a plain envelope and may not
state anywhere on it that it is in reference to a debt collection or
that it was sent from a collection agency.

At all times, debt collectors are required to give their names when
contacting other people and state that they are verifying or
correcting the residence or employment information about you. If
asked, they can give the name of the agency they work for. They are
prohibited about speaking about you owing a debt and may not call
anyone more than once, unless they received incorrect or incomplete
information the first time.

Your Remedy

You can take action against a creditor violates any provision of the
law. Make sure that you keep detailed records and keep all
information of the violation. If at all possible, you should have a
witness who saw or heard the improper act. In some states, you can
record phone conversations without permission; although, in the
majority of states you must have permission from the person you are
recording.

Send a letter to the original creditor and your state's attorney
general detailing the violation. You should also send a letter to
the Federal Trade Commission. It may be possible to get the entire
debt canceled due to a violation.

How to Deal with Collection Agencies

You must remember that you are dealing with a professional debt
collector. Do not let the debt collector talk you into paying more
than you can afford. Keep in mind that the agent may act friendly
and appear as if he or she is helping you. The agents are very
skilled at talking people into paying as much as possible. The more
they collect, the more they earn. They are persistent and
persuasive. And remember, you can always tell them not to call you
anymore.

Collection Agencies Tips

If you decide to work out a payment arrangement with the collection
agency, get everything in writing before paying.

Do not get emotional or caught up in the situation. Treat the call
as a business call.
You should not give any other phone numbers or tell the collection
agency how they can reach you.

Direct collection agents cannot call you anymore if you do not wish
to accept their calls.
If you choose to take their phone calls, keep a record of all the
calls.
Try to negotiate a settlement if possible

No matter how friendly and understanding the person on the phone
sounds, remember that he or she is doing a job and just wants to get
money from you.

The calculators and information contained herein are made available to
you as a self-help tool for illustrative use only. Examples are hypothetical.
We can not and do not guarantee the applicability or accuracy in regards
to your individual circumstances. I encourage you to seek personalized advice
from qualified professionals.